Blue Collar Feds Due for Raise as OPM Publishes Pay Parity Rule
A pay raise could be on the way for thousands of blue-collar federal workers who are paid hourly under the Federal Wage System (FWS).
The Office of Personnel Management (OPM) published a proposed rule in the Federal Register that aims to improve pay parity between FWS workers and workers on the General Schedule (GS) pay system. It also aims to reduce pay disparities between various FWS workers. The rule would only impact appropriated FWS jobs.
If approved, the rule could result in a raise of about 12 percent for approximately 14,500 blue-collar workers, including those in trade, craft, and manual labor occupations, like mechanics carpenters, HVAC, and electricians.
Many of the workers in line for a raise perform construction and facilitates related jobs at the Department of Defense (DOD), the Department of Veterans Affairs (VA), and the Bureau of Prisons (BOP).
“For too long, workers hired under the Federal Wage System were paid less money than their counterparts hired under a different pay system to work in the same area,” said President Biden in a statement. “My Administration is working to change that.”
Standardizing Pay Maps
The rule would standardize the maps used to calculate locality pay.
While maps for GS employees are updated annually, maps for FWS employees remain largely unchanged since the 1940s. The result is that in some areas, a single GS locality pay area corresponds with more than six FWS wage areas. In others, one FWS wage area can correspond with multiple GS locality pay areas. Typically, this results in a pay gap, with FWS workers paid less than GS counterparts.
“The difference in GS and FWS pay area boundaries is most noticeable on the East Coast from Maine to Virginia and on the West Coast in California,” wrote OPM.
Among those who would receive a raise are workers at two Pennsylvania army depots. For years, workers at Tobyhanna and Letterkenny have been paid less than GS counterparts, who are paid wages from the New York City or Washington, DC locales.
“The workers at Tobyhanna and Letterkenny Army Depots are a pillar of our Commonwealth’s economy and play a key role in protecting our national security,” said Senator Bob Casey, Jr. (D-PA). “This proposed rule would ensure highly skilled workers are paid what they deserve so they can continue supporting their families and contributing to Pennsylvania’s economy and security.”
“Sweet Victory”
Federal labor groups have advocated for such a rule for decades and applauded OPM’s efforts.
“This is a sweet victory that was a long time coming – too long—but I am thrilled that our efforts have finally paid off,” said American Federation of Government Employees (AFGE) President Everett Kelley.
“It is fundamentally unfair that federal employees working side-by-side, for the same employer, and in the same place, are paid differently when it comes to locality pay,” said National Federation of Federal Employees (NFFE) national president Randy Erwin. “It is time to end these pay inequities once and for all.”
There will be a 60-day comment period for the public to submit their thoughts. That period starts October 11, 2024.